TOKYO (Kyodo) — Major Japanese retailer Seven & i Holdings Co. plans to turn down a takeover bid proposed by Canadian convenience store giant Alimentation Couche-Tard Inc., as its offer price is not high enough, sources familiar with the matter said Thursday.
The Japanese company’s board concluded that the deal does not benefit its shareholders, and it is expected to send a notification letter to the Canadian firm soon, the sources said.
Seven & i said in August that it had received a nonbinding, preliminary buyout proposal from the Canadian retailer, without revealing the offer price.
The Japanese firm set up a special committee of independent outside directors to review the proposal.
If eventually realized, the planned buyout could be one of the biggest acquisitions of a Japanese company by a foreign firm, given the retailer’s market capitalization of over 5 trillion yen ($35 billion).
In the letter to be sent, Seven & i will state that the Canadian firm misjudges its business strategy and that the proposal does not take antitrust issues into account properly, the sources said.
Alimentation Couche-Tard, which runs brands including Couche-Tard and Circle K, has about 17,000 stores in over 30 countries and regions, including Canada and the United States.
Seven & i operates more than 80,000 Seven-Eleven convenience stores around the world.
Seven & i to reject Alimentation Couche-Tard buyout offer: sources
